Investors’ Recovery Rate is 49% in FINRA Arbitrations

Statistics reveal that investors have a much better chance of success now than they did three years ago. The Financial Industry Regulatory Authority (FINRA) indicates that the success rate in arbitration is now at 49%, up dramatically from 2007, when the win rate was only 37%, and up from 45% last year. These numbers are only indicative of the cases taken to arbitration. A much higher number of cases are settled prior to going to hearing either by way of mediation or negotiation. Recently there have been mammoth awards entered in cases over the month or so and we anticipate that this will continue into 2011, as the arbitration panels continue to be presented with evidence of brokerage fraud that was perpetrated on the public as well as their failure to have adequate supervisory and compliance systems in place to prevent it.